Nexus and Other Legal Tests

Value capture techniques require local legal authority to collect revenues. Each technique may require enabling legislation. In the broadest sense, value capture techniques must meet the following legal requirements:

  • Uniformity where the same tax or policy applies equally to every subject in the same situation;
  • Avoid challenges pursuant to "takings" under the Fifth and Fourteenth Amendments to the U.S. Constitution; and
  • Adhere to state and local laws and requirements including, but not limited to, the definitions of districts and zones, the placements and locations of sponsorship signage, uses of funds, and revenue collection.

Legal research and analysis of proposed value capture implementations are important to remain in compliance with local requirements. Additional legal information for the basis of these tests can be found in the Nexus Report.

To read the Nexus and Other Legal Requirements, please click here.